3 Flying Car Stocks to Buy in 2023 to Turn $1,000 Into $3,000

Stocks to buy

Given flying cars’ ability to ferry passengers to different locations within cities quite cheaply, I’ve long believed that the demand for flying cars will eventually go through the roof (no pun intended). While researching this article, I found that many researchers have reached the same conclusion about flying cars, also called eVTOLs. That’s short for electric vertical take-off and landing aircraft.

For example, research firm Technavio predicts that the eVTOL market will expand at an impressive compound annual growth rate (CAGR) of 27.5% from now until 2027. If the most successful eVTOL makers can grow their revenue at a CAGR of 40% and their stock prices climb at the same rate as their sales, their share prices will triple in five years. I believe that scenario can indeed materialize. Here are three flying car stocks poised to deliver for long-term investors.

Xpeng (XPEV)

Source: shutterstock.com/helloabc

Chinese electric vehicle maker Xpeng (NASDAQ:XPEVintroduced two highly promising eVTOL initiatives at its Tech Day on Oct. 24. 

First, the company unveiled a new version of its electric vehicle with “foldable wings.” The wings can rise above the EV’s roof, turning the EV into a “flying car” that can “take off vertically.” According to the website Elektrek, the new EV/eVTOL is “sharper” than the 2022 version. Imagine having a car that can turn into a plane when a traffic jam develops, enabling you to avoid ever missing an appointment because of traffic. That would come in very handy. 

XPEV has also launched a new, large electric truck with an eVTOL in its back. And interestingly, the EV, while being driven, can even charge the eVTOL. Truck owners who want to avoid traffic jams can have their eVTOLs, too. 

Given eVTOLs’ ability to completely circumvent traffic jams, XPEV’s eVTOLs will ultimately prove to be very popular with wealthy consumers in both China and Europe.

Eve Mobility (EVE)

Source: shutterstock.com/Pasuwan

Eve Mobility (NYSE:EVE) is an eVTOL maker that’s a subsidiary of Brazilian airplane maker Embraer (NYSE:ERJ).

Eve continues progressing on many fronts, as it made a deal with Blade Air Mobility (NASDAQ:BLDEto integrate Eve’s eVTOLs into European countries. Blade, which handles the logistics of booking flights on public and private planes, will both integrate Eve’s eVTOLs into existing routes and seek additional applications for the eVTOLs.

Also positive for Eve is a tentative agreement that it recently announced with Korea’s Motivation. Under the terms of a letter of intent between the two companies, Motivation will utilize Eve’s Air Traffic Management software. In addition to creating a new revenue stream for Eve, the deal, by giving the firm a foothold in South Korea, could enable it to eventually find buyers for its eVTOLs in the South Korean market. 

Finally, as I’ve noted in past columns, Eve’s status as a subsidiary of Embraer gives it automatic access to many potential customers. The company also has a great deal of money from its Brazilian parent. 

Joby Aviation (JOBY)

Source: Iljanaresvara Studio / Shutterstock.com

Joby (NYSE:JOBY) continues to make tremendous strides in the eVTOL market. 

On Oct.4, Joby announced that it had begun allowing pilots to fly its prototype planes. Previously, the company had mostly tested its prototypes using remote control. 

Moreover, Joby “has submitted all of its certification plans to the FAA and nearly two-thirds have been accepted,” according to Seeking Alpha columnist Jay Capital. The company has already, in accordance with its $131 million contract with the Air Force, delivered one of its eVTOLs to the Air Force.

Joby’s deals with the military, which are currently worth $163 million, should provide it with a great deal of cash. The cash position will greatly limit the amount it will need to borrow or raise through share dilution.

JOBY’s $3.7 billion market capitalization greatly understates the company’s long-term potential. 

On the date of publication, Larry Ramer held a long position in XPEV. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.

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